On a Statement of Cash Flows, Collections of Accounts Receivables

question 56

Multiple Choice

On a statement of cash flows, collections of accounts receivables are classified as an) :

• A)investing activity.
• B)operating activity.
• C)financing activity.
• D)Accounts Receivable collections are not reported on a statement of cash flows.

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Definitions:

Goal Congruence

A condition in which the goals of the organization's different members or departments align and support the overall objectives of the organization.

Perfect Competition

An ideal market scenario in which there are many buyers and sellers, homogeneous products, and no barriers to entry or exit.

Transfer Pricing Formula

A method used to determine the price at which goods and services are sold between divisions within the same company.

Variable Cost

Costs that vary in total in direct proportion to changes in the level of activity or volume of output produced.